Consumers are relieved: Germany is laying a mega power line to England

Consumers are relieved
Germany is laying a mega power line to England

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By 2028, Germany and Great Britain will be building a 720-kilometer-long electricity connection. According to Federal Minister of Economics Habeck, this is an important step towards climate neutrality. Experts also see the project positively: they expect relief for many consumers.

With the symbolic groundbreaking ceremony in Wilhelmshaven, construction of the direct electricity connection between Great Britain and Germany, known as “NeuConnect”, begins on the German side. The investment costs of the project will be borne by an international consortium. Federal Minister of Economics Robert Habeck emphasized the importance of starting construction on the first direct German-British electricity connection for the envisaged climate neutrality and security of supply for both countries.

The electricity connection has a planned capacity of 1.4 gigawatts and is expected to supply up to 1.5 million households with electricity. The line is scheduled to be put into operation in 2028. Experts expect that this electricity connection will make electricity supply more secure and have a positive effect on prices.

“The climate-neutral electricity system needs flexibility. That’s why we’re not only expanding the power grids in Germany, but also providing power lines to our neighbors,” explained Habeck in a press release. “The construction of this electricity connection is one of many building blocks of decarbonization, combined with the highest level of security of supply – including across borders. Both must go hand in hand.” The close German-British cooperation in this area is a good sign for further cooperation projects.

In addition to Habeck, the British Minister of State for Trade Policy Gregory Hands and the Lower Saxony Economics Minister Olaf Lies are also present at the groundbreaking ceremony in Wilhelmshaven. NeuConnect is intended to connect the two transmission networks of Germany and Great Britain over a length of around 720 kilometers.

Green electricity through the North Sea to Germany

The power connection is to run from the planned Isle of Grain substation in the county of Kent to the Fedderwarden substation in the urban area of ​​Wilhelmshaven. It also crosses the territory of the Netherlands. The length of the German part of the line is 193 kilometers. In the North Sea, the line is planned as a submarine cable and on the German land side as an underground cable.

According to the ministry, Great Britain, which like Germany wants to become climate neutral by the middle of the century, has significant potential in the generation of offshore wind energy and plans to expand installed capacity to 50 gigawatts by 2030. “Green electricity will therefore flow to Germany in the future via NeuConnect,” said the ministry.

Engineers expect relief for consumers

The Association of German Engineers (VDI) sees the project as positive, as it will reduce the burden on consumers and lead to a better price-performance ratio. “The groundbreaking for the first direct electricity connection between Great Britain and Germany is another important building block in securing the electricity supply in Europe,” explained VDI energy expert Harald Bradke. “These interconnectors enable the exchange of electricity between the electricity grids in Europe, thereby increasing competition and security of supply.”

According to the Federal Network Agency, Germany has been connected to all of its neighbors as well as to Sweden and Norway through electricity grids for years. By 2022, electricity producers had generated an export surplus. In 2023, more was imported than exported for the first time. The shutdown of the last German nuclear power plants also contributed to this to a small extent, but above all it was a question of price: much cheaper wind power was produced, particularly in northern Europe, explained Bradke. That’s why “the more expensive fossil fuel German power plants were not needed.”

One of the key players on the UK market

However, in view of the British plans, the direction of sales could change in the future. The largest wind farm projects in the world, Dogger Bank and Hornsea, are under construction in the North Sea. German companies are also getting involved in the British offshore wind energy market. “RWE is one of the largest developers in the country with currently ten ongoing and nine planned offshore wind projects,” explained Marc Lehnfeld from the federally owned company Germany Trade and Invest (GTAI). “EnBW is also currently developing three offshore wind farms on the British coast.”

However, the industry is also under pressure. “Significantly increased costs for the wind turbines themselves, but also on the financing side, are causing the development of further wind farms to stall for the time being,” said Lehnfeld. The current sixth round of funding for renewable energy projects could provide a boost. At 800 million pounds, the majority of the funding pot is reserved for offshore wind energy.

However, the Renewable UK association and the Innovation Center Cluster Offshore Renewable Energy (ORE) Catapult criticize that the funding volume will not be enough to close the gaps in the last round of funding that came up empty.

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